Egypt's Oriental Weavers to build industrial complex

CAIRO, March 2 (Reuters) - Oriental Weavers ORWE.CA, Egypt's largest carpet maker, said on Sunday it would build an industrial complex for more than 1.3 billion Egyptian pounds ($237 million) to meet rising demand. The company, which manufactures machine-woven carpets and rugs, said it had seen a 60 percent increase in signed contracts at international carpet fairs in Germany and the United States.

Oriental Weavers said the first phase was set to start production by the end of 2009, and would produce rugs with an initial investment cost of 495 million pounds. The second phase would add fibre extrusion and additional rug capacity and would cost 443 million pounds.

The third phase would introduce an additional 578 million pounds in sale value and would cost 444 million pounds.

Oriental Weavers said the project, to encompass 17 facilities built over 190,000 square metres, would be financed through 55 percent debt and 45 percent equity. Shares in the firm ended 3.3 percent higher at 52.80 pounds per share. (Writing by Cynthia Johnston; Editing by Erica Billingham)